Debt Consolidation Companies vs. Bankruptcy

Helping Clients Make the Right Choice to Get Relief From Debt

Debt consolidation companies often advertise that they can help you lower your monthly payments without filing bankruptcy. What they do not tell you is that their approach is extremely risky because they cannot force your creditors to agree to a payment plan.

At the law firm of Gingold & Gingold LLC, our experienced attorneys — Ira D. Gingold, who has been a bankruptcy lawyer since 1971 and Court-appointed Bankruptcy Trustee from 1971-2013, and Jamie L. Gingold, who has been practicing bankruptcy, real estate and business law since 2001 — are committed to making sure people know the truth about debt consolidation companies.

Understanding How Debt Consolidation Differs From Bankruptcy

One of the benefits of filing bankruptcy with the help of an experienced attorney is that the interest on your credit card debts and lawsuit judgments stops. The Bankruptcy Court has the power to permanently wipe out your debts in Chapter 7 or force your creditors to accept an affordable repayment plan in Chapter 13. Debt consolidation companies do not have the legal power to do either of these things. Common problems with these companies include:

  • High fees charged by the debt consolidation company
  • High interest rates charged by your creditors
  • Negative information on your credit report
  • Garnishment of your wages by creditors who refuse to participate

Our bankruptcy lawyers can relieve your stress by helping you make a fresh start. We will get your debts wiped out so you can focus on paying for what is really important to you rather than paying a debt consolidation company every month while fees, interest and penalties continue to increase.

Contact Us for a Free Consultation to Learn More About Your Options

To learn more about the difference between debt consolidation and bankruptcy, contact us today at (404) 685-8800 or by e-mail to schedule a free consultation with our attorneys. We have convenient office locations in Atlanta, Cumming, Dallas, Douglasville, and Duluth, with evening and weekend appointments available.